Zero brokerage apps: what they still charge you in 2026

A zero brokerage app only waives the broker's own fee for placing a trade. You will still pay mandatory government taxes, exchange transaction charges, and depository fees on every order. These extra charges apply across all platforms and often cost more than the brokerage you save.

By Qrates research desk · 2026-10-27

Quick answer: Are zero brokerage apps really free?

No trading app is completely free. Zero brokerage only means the broker does not charge a fee to execute your trade. You still pay mandatory government taxes, exchange transaction charges, and depository fees on every trade. Statutory levies like the Securities Transaction Tax (STT) apply to equity delivery, intraday, and equity derivative trades regardless of the broker you use. If you are looking for a reliable platform, you can explore various stock broking and trading apps to compare their offerings.

What zero brokerage actually means and covers

A zero brokerage plan waives the broker's own commission for buying or selling shares. Many discount brokers offer zero brokerage on equity delivery but charge a flat fee for intraday and futures and options (F&O) trades. Some apps offer zero brokerage across all segments. However, this waiver never includes third-party fees like Central Depository Services Limited (CDSL) or National Securities Depository Limited (NSDL) charges.

How the charges add up: A worked example

If you buy and sell ₹1,00,000 of shares for delivery, the brokerage is ₹0. You will pay around ₹100 in STT, ₹3 in exchange transaction charges, ₹15 in Depository Participant (DP) charges, plus Goods and Services Tax (GST) and stamp duty. With SEBI's new larger F&O contract sizes, statutory levies heavily outweigh the ₹20 brokerage you might save (sebi.gov.in).

Charge type	Who collects it	Estimated cost on a ₹1,00,000 delivery trade
Brokerage	The broker	₹0
STT	The government	₹100
Exchange transaction charge	NSE or BSE	₹3
DP charge	Depository and broker	₹15
Stamp duty	State governments	Varies
GST	The government	Applies to broker and exchange fees

What to check in your own case: The fees you still pay

Annual Maintenance Contract (AMC)

Many brokers offer a free first year but charge an AMC later. The AMC for zero brokerage platforms typically ranges from ₹300 to ₹500 per year. Understanding how demat account charges explained: AMC, DP and brokerage work is essential for every investor.

Depository Participant (DP) charges

DP charges apply every time you sell shares from your demat account. This fee is usually ₹13 to ₹20 per scrip. DP charges apply per company stock sold on a given day, regardless of the number of shares. Intraday and F&O trades do not attract DP charges because shares do not leave your account.

Statutory levies: STT, Stamp Duty, and GST

STT applies to equity delivery, intraday trades, and equity derivatives like futures and options. It does not apply to currency derivatives. Uniform stamp duty is collected by stock exchanges and clearing corporations. GST is applied to all broker fees, exchange transaction charges, and the SEBI turnover fee.

Operational fees: Auto square-off and payment gateways

Brokers charge an extra fee if their system has to auto square-off your intraday position at 3:15 PM. Adding funds via net banking also incurs a payment gateway fee. You can avoid this gateway fee by using a Unified Payments Interface (UPI) transfer instead.

Common mistakes when using free demat accounts

Selling small quantities of shares frequently, where the flat DP charge eats up your profit.
Assuming pledging shares for margin is free, when brokers charge a fee per pledge request.
Ignoring payment gateway fees when transferring funds via net banking instead of UPI. If you are choosing between popular platforms, it helps to read a detailed comparison like Angel One vs Groww: Brokerage, AMC and hidden charges in 2026.

Frequently asked questions

How do zero brokerage apps make money?

Brokers earn interest on uninvested client funds during the day, charge for margin funding, and collect AMC and API fees. SEBI mandates that uninvested client funds must be moved to clearing corporations daily (sebi.gov.in). Before signing up, learn how to check if a stock broker is SEBI registered and spot fake trading apps.

What are DP charges in free demat accounts?

DP charges are levied by depositories (CDSL or NSDL) and the broker when shares leave your account. They apply to delivery trades but not intraday or F&O trades.

Do I have to pay STT on zero brokerage platforms?

Yes, STT is a mandatory government tax. It applies to equity and equity derivative trades across all brokers, though it does not apply to currency derivatives.

The short version

Zero brokerage only means the broker does not charge a fee to execute your trade.
You still pay mandatory government taxes, exchange transaction charges, and depository fees on every trade.
DP charges apply every time you sell delivery shares.
Brokers charge extra fees for auto square-off and net banking fund transfers.
Statutory levies on larger F&O contract sizes often cost more than the saved brokerage.

You can check the latest AMC, DP charges, and account opening fees for specific platforms at the Qrates broking apps directory.

Sources

Disclaimer

Qrates is an information directory. It takes no commission from any company listed and does not recommend products. Figures are taken from the sources named and dated, and they change; check the company's own page before you decide. This is not investment, credit, insurance or tax advice for your situation.